Quote:
Originally posted by sebastian_dangerfield
Many retired business owners get paid in dividends as part of the buyout of the shares of their interest in the business. If you raised the rate on dividends sharply, you'd hurt a lot of people. You'd also make it more difficult for people to sell their businesses.
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1. Bullshit. If people get cahs on the buyout of their interest in a business, its cash boot, taxed as capital gain.
2. Tough. The tax break on dividends is less than five years old and was grossly unfair when it was passed.
3. If they want out of a business, and they're ging to make a good profit on the sale, people will still sell their businesses. If they don't because 15% (or even 35%) of the gain is going to go to pay taxes, then they should be assessed an idiot tax.
